Around the nation

Copyright 2007 Houston Chronicle News Services

Published 5:30 am, Tuesday, August 28, 2007

Acquisitions

Topps Co. puts off buyout decision

Topps Co., the maker of baseball cards and Bazooka bubble gum, postponed a shareholder decision on a $384.5 million buyout by a group led by Michael Eisner, saying the offer would likely be rejected in a Thursday vote.

The delay comes a week after Upper Deck Co. dropped a $416 million bid made in May. Tornante Co., controlled by Eisner, the former Walt Disney Co. CEO, and Madison Dearborn Partners offered $9.75 a share for Topps in March. Upper Deck had offered $10.75 a share. The vote on the Eisner proposal was moved to Sept. 19 so stockholders "can evaluate recent developments," New York-based Topps said Monday.

They join two other advisory firms — Institutional Share-
holder Services and Glass, Lewis & Co. — who last week recommended nominees from the fund. The firms echoed Breeden's criticism that H&R Block's management has hurt shareholders by moving into banking and mortgage lending, allowing its core tax-return business to flounder.

Economy

Record number of homes unsold

WASHINGTON - Sales of existing homes dropped for a fifth straight month in July while the number of unsold homes shot up to a record level.

Many analysts said the worst slump in housing in 16 years is likely to deepen in coming months, reflecting the recent turmoil in credit markets, which has caused lenders to tighten their standards.

The National Association of Realtors reported Monday that sales of existing homes dipped by 0.2 percent in July, compared to June, to a seasonally adjusted annual rate of 5.75 million units.

The median price of a home sold last month slid to $230,200, down by 0.6 percent from the median price a year ago. It marked the 12th consecutive month home prices have declined, a record stretch.

Power

Calpine creditors get upbeat news

Calpine Corp. on Monday filed an amended reorganization plan that promises greater recoveries for investors than previously projected, and the troubled power producer said it could emerge from bankruptcy soon.

Calpine estimated that general unsecured creditors will receive 95 percent to 100 percent of their allowed claims, and shareholders would receive $2.05 per share of common stock in the "most likely" scenario. Earlier this year, San Jose-based Calpine told investors to expect $1.80 per share. A bankruptcy judge will hold a hearing Sept. 11.

In other news ...

• The
Treasury Department
auctioned $24 billion in three-month bills at a discount rate of 4.6 percent, up from 2.85 percent last week. Another $19 billion in six-month bills was auctioned at 4.59 percent, up from 3.95 percent.
• The
Federal Reserve
said Monday that the average yield for one-year Treasury bills fell to 4.16 percent last week, down from 4.44 percent.
•
Procter & Gamble Co.
sued
Kraft Foods
on Monday, charging that a new plastic container for Kraft's
Maxwell House
coffee brand infringes on patents for P&G's
Folgers
coffee container. "I can tell you that Kraft respects valid patent rights of others and abides by all appropriate U.S. patent laws," said
Renee Zahery
, a spokeswoman for Kraft.